EUKN - European Urban Knowledge Network - Entrepreneur Programme

Entrepreneur Programme - Stockholm, Sweden

Introduction

The Lunda Nova Business Centre is an innovative collaborative project between the business community and the City of Stockholm, Sweden. The Centre helps people who want to start their own business.

Problem

How to reverse the problem-oriented approach towards unemployed immigrant residents into a focus on the companies' needs and the residents' assets?

Description

Tensta is a Stockholm suburb, known for its large concentration of immigrants, high rates of unemployed and people on social welfare. Tensta is a very young district; 41% of the residents are younger than 25 years. Young persons and immigrants are in a vulnerable position on the labour market. The success of the Lunda Nova Business Centre proves that it is possible to change the perception of the problem by focussing on opportunities instead of problems.

Approach

The Lunda Nova Business Centre has been set up in order to counteract segregation and unemployment and exploit the specific opportunities of the neighbourhood. It is built upon a partnership between the business community, the City District Council and the Public Employment Agency.
The Centre's primary tasks are: creating a network of schools and businesses, to ensure that the centre becomes the natural meeting place for local entrepreneurs, helping companies with bureaucracy from the public authorities and training entrepreneurs.
One of the projects of the Centre is the Entrepreneur Programme. In this programme people get help to start their own business. The Centre advises potential entrepreneurs about the requirements for starting a new business. If the Centre makes the evaluation that the entrepreneur has a potentiality to manage the business, it will grant six months subsidy from the social insurance office.

Results

Unemployment has fallen quicker in Tensta than in the rest of Stockholm and in relation to comparable neighbourhoods. In 1999-2000 unemployment was lowered with 58%, Stockholm with 42% in the same period.
140 entrepreneurs have started a new business after consulting the Centre. The majority of these entrepreneurs have been immigrants. The entrepreneurs had usually been at one general information meeting and had 3-4 sessions with an individual consultant.
90 % of the enterprises covered by the programme were still in operation after the first two years.
Lunda Nova has paid many drivers-licenses courses and nursing courses for unemployed who wants to become taxi-chauffeurs and nursing assistants, which has resulted in work for many.
Although the schools have been reluctant to cooperate, 50 businesses and schools have been involved in the Lunda Nova network. Pupils may follow the companies now and then during a whole semester. The network gives the youths connections to the local business community.
Lunda Nova has created a solid network of businesses and presents arenas for meetings. These meetings have a potential to develop the residents' professional network.

Contact info

Lunda Nova Business Centre
Torbjörn Gustavsson (Manager Lunda Nova Business Centre), tel. +46 850803409

Project start date

01/05/1999

Links

Lunda Nova Business Centre

Swedish welfare policy with Tensta as a case study (English, PDF, 1.2 MB)

Document type

case

Themes

Urban Policy > Economy knowledge & employment > Urban economy

Keywords

Business support